Manchester City have been referred to Club Financial Control Body adjudicatory chamber by UEFA over a potential breach of FFP rules.
Reports this week suggested City may face a Champions League ban if found guilty after being fined and hit with a restriction on transfer spending after an initial breach in 2014.
UEFA's club financial control body chief investigator referred the club after a new probe was launched on March 7 after further allegations about the same period.
The adjudicatory chamber will now make a final decision on City, with a ban from Europe's premier competition believed to be a real possibility.
City have responded to UEFA's statement, with the Premier League club stating they are "disappointed but regrettably not surprised."
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City have been under investigation by a regulatory committee over a series of leaks into their financial conduct published in German outlet Der Spiegel.
It was reported that the body, led by former Belgium Prime Minister Yves Leterme, would push for at least a one-season Champions League ban.
"Manchester City Football Club is disappointed, but regrettably not surprised, by the sudden announcement of the referral to be made by the CFCB IC Chief Investigator Yves Leterme," a club statement read.
"The leaks to media over the last week are indicative of the process that has been overseen by Mr. Leterme.
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"Manchester City is entirely confident of a positive outcome when the matter is considered by an independent judicial body.
"The accusation of financial irregularities remains entirely false and the CFCB IC referral ignores a comprehensive body of irrefutable evidence provided by Manchester City FC to the Chamber.
"The decision contains mistakes, misinterpretations and confusions fundamentally borne out of a basic lack of due process and there remain significant unresolved matters raised by Manchester City FC as part of what the Club has found to be a wholly unsatisfactory, curtailed, and hostile process."
The chairman of the adjudicatory chamber, Jose Narciso da Cunha Rodrigues, will make the final decision alongside four other members including British QC Charles Flint.
